Reviewer - HRM
Reviewer - HRM
● HRM is an integrated set of processes, practices, programs, and systems in an organization Wave 1 – Early 1900s
that focuses on the effective deployment and development of its employees. ● Focused on the administrative work of HR personnel, such as the terms and conditions of
● Human resource management involves creating personnel policies and procedures that work, delivery of HR services, and regulatory compliance (e.g., payroll). This administrative
support business objectives and strategic plans. Central to this mission is fostering a culture side still exists in HR today, but it is often accomplished differently via technology and
that reflects core values and empowers employees to be as productive as possible. outsourcing solutions.
Personnel department responsible for people Partner with management in all areas of hiring
administration and management of people
Creates a cost within the organization Contributes to the profit objectives of the
organization.
ROLE OF HRM IN ORGANIZATIONS ● Results in higher productivity for the organization
HRM is an umbrella’ term for many different and interrelated functions. A manager is responsible for ● Key component in employee motivation
achieving the organization's goals through the effort of its people. ● Employees who feel they are developing their skills tend to be happier in their jobs,
which results in an increase of employee performance, productivity and retention
1. LEGISLATION AND LAW ● Examples of training courses and programs might include the following:
● It is very important that human resource managers are aware of all the laws that affect the - Job skills training, such as how to use a computer program
workplace and they ensure that the processes in place abide by them. - Training on communication
● An HRM manager will work under the following legal frameworks: - Team-building activities
- National Government - Policy and legal training, such as sexual harassment training, safety
- Provincial Government training and ethics training
- Health and Safety Requirements - Time management skills
- Labour Laws
- Employment Standards 6. PERFORMANCE ASSESSMENT AND MANAGEMENT
● Employee performance is a support role provided by HRM to the organization and
2. CORPORATE POLICIES management.
● In addition to having to comply with the requirements mandated by law, every ● HR has the responsibility of designing, maintaining and administering an
organization may have their own set of unique policies. organization’s performance management policies and systems.
● Example: These policies can be set to: ● Performance appraisal systems may include:-
- ensure fairness(e.g., vacation policy above and beyond those legally - 360 appraisal process
mandated), - Behaviour checklist
- to enhance effectiveness(e.g., internet usage policy), - Graphic rating scale
- or simply to reinforce the culture (e.g., dress code). - MBO or management by objectives
- Annual employee performance appraisals
3. JOB ANALYSIS AND DESIGN - Performance Improvement Plan (PIP)
● Organizations rely on the execution of numerous and varied tasks. These tasks, ● Once a measure of performance is obtained, the HRM professional uses it for
which are often carried by employees, have to be structured in such a way to multiple purposes, including:
maximize efficiency. - Providing feedback for employees
● They should be clear and distinct from each other. - Determining compensation (e.g., bonus, raise,etc.)
● They should also be performed by capable employees. - Taking disciplinary measures
● HRM supports the definition, documentation and organization of these tasks - Supporting career development
through the processes of job analysis and job design.
7. COMPENSATION AND BENEFITS ADMINISTRATION
4. TALENT ACQUISITION ● HRM professionals need to determine that compensation is fair, meets industry
● You need the right people to perform tasks and get work done in the organization. standards, and is high enough to entice people to work for the organization
Even with the most sophisticated machines, humans are still needed, therefore, ● HRM professionals need to make sure the pay is comparable to what other people
● One of the major tasks in HRM is talent acquisition. performing similar jobs are being paid.
● Talent acquisition involves the entire hiring process from posting a job to ● This involves setting up pay systems that take into consideration the number of
negotiating a salary package. Within the talent acquisition function, there are four years with the organization, years of experience, education, and also considers the
main steps: results of external salary surveys.
1. Talent Management Strategy
2. Human Resource (Capital) Pla.
3. Recruitment Plan
4. Selection Process
Demographics Convenience
● Demographics affect the labour market in planning and trends for the future. Often, the ● Most HRIS now are multi- platform, and managers have the ability to pull together a report in
government tracks trends in the labour market years in advance. only a few clicks on their phone.
HUMAN RESOURCES INFORMATION SYSTEMS (HRIS) People analytics: often used as a synonym for HR analytics, is technically applicable to “people” in
HRIS helps companies organize and manage people-related data. Because all this information is general. It can encompass any group of individuals even outside the organization.
housed in one location, it serves as a single source of accurate data and often allows users to create
reports that canbeused to identify trends and make business decisions. DATA
● At the base of HR analytics is data. The wealth of data currently available to HR managers
has increased exponentially in the past few years.
● As a result of high-performance HRIS and new technology such as employee tracking, HR
BENEFITS OF HRIS managers now have a great deal of information at their disposal.
Organization
● An HRIS allows for information to be easily collected, tracked, updated, and searched. Type of data collected in the organization:
● Revenue per employee ● Involuntary turnover rate
Time to hire
● Offer acceptance rate ● Time to fill
● Training expenses per employee ● Time to hire ● The number of days between approaching a candidate and the candidate’s acceptance of the
● Training efficiency ● Absenteeism job offer.
● Voluntary turnover rate ● Just like time to fill, data-driven analysis of time to hire can benefit recruiters and help them
improve the candidate experience to reduce this time.
Revenue per employee
● Obtained by dividing a company’s revenue by the total number of employees in the company.
Absenteeism
● This indicates the average revenue each employee generates. It is a measure of how
● Absenteeism is a productivity metric, which is measured by dividing the number of days
efficient an organization is at enabling revenue generation through employees.
missed by the total number of scheduled workdays.
● Absenteeism can offer insights into overall employee health and can also serve as an
Offer acceptance rate
indicator of employee happiness
● The number of accepted formal job offers (not verbal) divided by the total number of job offers
given in a certain period.
ANALYTICS AND THE LAW
● A higher rate (above 85%) indicates a good ratio. If it is lower, this data can be used to
Some legal considerations to keep in mind when implementing an HR analytics solution are:
redefine the company’s talent acquisition strategy.
1. Employee privacy and anonymity
2. Consent from employees about the amount and type of data collected
Training expenses per employee
3. Establishing the goal of data collection and informing employees accordingly
● Obtained by dividing the total training expense by the total number of employees who
4. IT security when using third-party software to run HR analytics
received training.
5. Location of the HR analytics vendor – with whom the data will be stored – and their
● The value of this expense can be determined by measuring the training efficiency.
compliance with local laws
● Poor efficiency may lead you to re-evaluate the training expense per employee.
HR ANALYTICS APPLICATION
JOB DESIGN
Training efficiency
● Job design helps to structure jobs to make them more motivating and to increase the
● Obtained from the analysis of multiple data points, such as performance improvement, test
performance of employees.
scores, and upward transition in employees’ roles in the organization after training.
● Data, and more specifically data analytics, can allow HR Managers to pinpoint areas that
● Measuring training efficiency can be crucial to evaluating the effectiveness of a training
facilitate or impede motivation or performance
program
RECRUITMENT
Voluntary turnover rate
● The objective of recruitment is to generate the maximum number of quality applications
● Voluntary turnover occurs when employees voluntarily choose to leave their jobs.
possible; recruitment analytics borrows heavily from marketing science.
● It is calculated by dividing the number of employees who left voluntarily by the total number of
● Recruiters that use analytical tools rely on segmentation, statistical analysis, and the
employees in the organization.
development of optimal people models(i.e., ideal candidates).
● This metric can lead to the identifying gaps in the employee experience that are contributing
● Since an increasing majority of recruitment occurs electronically, there is a vast amount of
to voluntary attrition.
data available to recruiters to seek to optimize their processes.
Involuntary turnover rate
TALENT ACQUISITION
● When an employee is terminated from their position, it is termed “involuntary.”
● The objective of talent acquisition is to find the best employee for a specific job.
● The rate of involuntary turnover is calculated by dividing the number of employees who left
● This can be a daunting task. People are complex and evaluating them is fraught with
involuntarily by the total number of employees in the organization.
obstacles such as biases.
● This metric can be tied back to the recruitment strategy and used to develop a plan to
● HR analytics allows the HR department to cut through this complexity.
improve the quality of hires to avoid involuntary turnover.
● For example, HR managers can analyze the profiles of their top performers, identify their
characteristics (e.g., they have MBA’s, were involved in high-level athletics, or are introverts)
Time to fill
and align their staffing processes accordingly
● The number of days between advertising a job opening and hiring someone to fill that
position.
TRAINING
● By measuring the time to fill, recruiters can alter their recruitment strategy to identify areas
where the most time is being spent.
● Fuelled by data and analytics, ‘adaptive’ learning technology allows courses, course
Position Office Manager
segments, activities, and test questions to be personalized to suit the learner’s preference, in
terms of pace and method of learning.
Job Family Senior Accountant, Accounts Payable Clerk,
● Individual, self-paced online learning is also arguably more cost effective than pulling Bookkeeper, Junior Accountant, Financial
employees out of their job for a day or week to send them on expensive training courses. Controller
● Importantly, self directed learning helps integrate ongoing development into employees’
everyday routines.
HR managers collect information about jobs, positions, and job families for:
COMPENSATION ● HR planning
● Whether it is managing job candidate salary expectations or looking for evidence of pay ● hiring
equity, data allows HR managers to make decisions based on facts. ● training and development,
● performance appraisals,
PERFORMANCE MANAGEMENT ● compensation
● UPS has taken the use of data and analytics in performance management to an entirely new ● following the laws and legislation
level.
● For example, the handheld computer that drivers have been carrying for years (those STRATEGIC IMPACT OF JOB ANALYSIS
electronic boxes you sign to say you received your parcel) is actually a sophisticated device 1. Recruitment
that helps drivers make better decisions, such as which order to deliver parcels in for the ● Job specifications are needed before a job can be advertised including knowledge, skills,
most efficient route. abilities (KSA).
● In addition, UPS trucks are fitted with more than 200 sensors that gather data on everything
from whether the driver is wearing a seatbelt to how many times the driver has to reverse or 2. Selection
make a U-turn. ● A job description is necessary to help HR, managers and the employees to become familiar
with their job.
HEALTH AND SAFETY
● Safety-oriented companies rely on analysis of historical safety incidents to identify potential 3. Training and Development
trends ● HR managers need to stay current on trends and future skills requirements; and provide or
● Through advanced analytics, companies can use predictive modeling techniques to identify offer training to ensure employees skills and talents are up-to-date. This ensures the
the factors of incidents. company remains competitive in the economy.
● The goal is effective prevention.
4. Performance Appraisals
JOB ANALYSIS and JOB DESIGN ● Employees are evaluated on their work performance. This ensures the company remains
competitive in the economy.
STRATEGY AND JOB ANALYSIS
A job is a paid position to complete a task or a piece of work. 5. Compensation
● The tasks are related or similar in nature. ● Employees are assigned a rate of pay that is determined by their worth to the company.
● There are different jobs that require different skills, knowledge and experiences. Worth is decided based on skills, knowledge and abilities (KSA), responsibilities, and
● Companies may have several similar jobs that many people complete, and it is the same job. experience.
A position is paid and is a group of responsibilities assigned to one person, and this person has specific 6. Laws and Legislation
duties. ● HRM has a collection of data that ensures job descriptions and specifications match the rate
Some positions may be similar, yet grouped together called a job family. of pay.
● This could present an issue if a person was paid less for the skills they bring to the company.
● It might be considered discrimination.
Information gathered from the job analysis falls into two categories:
METHODS OF DATA COLLECTION
- task demands of a job
The most effective technique when collecting information for a job analysis is to obtain information
- human attributes necessary to perform these tasks.
through direct observation as well as from the most qualified incumbent(s) via questionnaires or
interviews.
Types of job analyses that can be performed:
1. Task based job analysis Open-ended Job incumbents and/or managers fill out questionnaires about the
● Tasks are to be expressed in the format of a task statement. questionnaire Knowledge, Skills,
● The task statement is considered the single most important element of the task and Abilities (KSA’s)necessary for the job.
analysis process.
HR compiles the answers and publishes a composite statement of job
● It provides a standardized, concise format to describe worker actions.
requirements.
● Task statements should provide a clear, complete picture of what is being done,
how it is being done and why it is being done. This method produces reasonable job requirements with input from
● A complete task statement will answer four questions: employees and managers and helps analyze many jobs with limited
(1) Performs what action? (action verb) resources.
(2) To whom or what? (object of the verb)
(3) To produce what? or Why is it necessary? (expected output) This can be completed on paper or online, many are available for free.
(4) Using what tools, equipment, work aids, processes?
● When writing task statements, always begin each task statement with a verb to Structured These questionnaires only allow specific responses aimed at determining
questionnaire the nature of the tasks that are performed, their relative importance,
show the action you are taking. frequencies, and, at times, the skills required to perform them.
● Do not use abbreviations and rely on common and easily understood terms.
● Be sure to make statements very clear so that a person with no knowledge of the It is helpful to define a job objectively, which also enables analysis with
department or the job will understand what is actually done. computer models.
2. Skills-based job analysis This questionnaire shows how an HR professional might gather data for
a job analysis.
● Focuses on the specific knowledge and abilities an employee must have to perform
the job.
Interview In a face-to-face interview, the interviewer obtains the necessary
● This method is less precise and more subjective.
● Department
information from the employee about the KSAs needed to perform the
● Job Summary
job.
● Reports to
The interviewer uses predetermined questions, with additional follow-up ● Duties and responsibilities
questions based on the employee’s response. ● Working Conditions
2. Think of the job description as a snapshot of the job.
This method works well for professional jobs. 3. Communicate clearly and concisely.
4. Make sure the job description is interesting to the right candidate applying for the job.
Observation Employees are directly observed performing job tasks, and observations 5. Avoid acronyms.
are translated into the necessary KSAs for the job.
6. Don't try to fit all job aspects into the job description.
Observation provides a realistic view of the job’s daily tasks and activities 7. Proofread the job description.
and works best for short cycle production jobs.
JOB SPECIFICATION
Work Diary or A work diary or log is a record maintained by the employee and includes Job Specifications includes the knowledge, skills and abilities (KSA) and other characteristics required
Log the frequency and timing of tasks. to complete the job. These can include experience, education requirements, physical and/or mental
demands of the job, and training.
The employee keeps logs over a period of days or weeks.
JOB DESIGN
HR analyzes the logs, identifies patterns and translates them into duties
and responsibilities. It pertains to the specification of contents, methods, and relationship of jobs in order to satisfy
technological and organizational requirements as well as the social and personal requirements of the
This method provides an enormous amount of data, but much of it is job holder.
difficult to interpret, may not be job-related and is difficult to keep
up-to-date. When an organization is changing or expanding, human resource professionals must also help plan for
new jobs and shape them accordingly. These situations call for job design and business process
EVALUATE AND VERIFY THE DATA re-engineering (BPE/BPR), the process of defining the way work will be performed and the tasks that a
● Once obtained, job analysis information needs to be validated. given job requires.
● This can be done with workers performing the job or with the immediate supervisor, for
accuracy purposes. To design jobs effectively, a person must thoroughly understand the job itself (through job analysis) and
● This corroboration of the data will ensure the information’s accuracy, also help the its place in the larger work unit’s work flow process.
employees’ acceptance of the job analysis data.
Having a detailed knowledge of the tasks performed in the work unit and in the job gives the manager
JOB DESCRIPTION many alternative ways to design a job.
● It is a document that includes job tasks and duties.
● It is essentially a standardized summary of a job DESIGNING EFFICIENT JOBS
● Include the following components: Job Characteristics Model
1. Date
2. Job title
3. Classification
4. Job functions (the tasks the employee performs)
5. KSA (Knowledge, Skills and Abilities) – what an employee is expected to know
and be able to do, as well as personal attributes
6. Education and experience required
7. Physical requirements of the job (ability to lift, see, or hear, for example)